Herb Corporation has provided the following information:
Current assets $200,000
Total assets $750,000
Total liabilities $300,000
Current liabilities $100,000
Weighted average cost of capital 10%
Operating income $140,000
Target rate of return 12%
Income tax rate 40%
What is Herb Corporation's economic value added?
A) $50,000 B) $65,000 C) $19,000 D) $6,000
C
Business
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